Krispy Kreme to award 1.2m shares to CEO as fee

Nation's Restaurant News, August 15, 2005

WINSTON-SALEM, N.C. -- Krispy Kreme Doughnuts Inc. said it had agreed to an equity-based "success fee" with turnaround firm Kroll Zolfo Cooper LLC, which the operator or franchisor of 368 doughnut shops has employed since January in an effort to overcome slipping profits and regulatory and legal investigations.

New York-based Kroll Zolfo Cooper will receive a warrant for 1.2 million shares of Krispy Kreme common stock at $7.75 a share, Krispy Kreme said in a statement. The warrant can be exercised on the latter date of either Jan. 29, 2006, or 30 days following the appointment of a chief executive officer to replace Stephen F. Cooper, chairman of Kroll Zolfo Cooper and interim chief executive of Krispy Kreme. The warrant does not expire until Jan. 31, 2013, Krispy Kreme also said.